Best Thread Correlation Trading - Basic Ideas and Strategies
jrplimited
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Hi N & anyone else,
Hope you all over indulged yourselves on those choc eggs during the holidays - busy time for weight watchers club now! Speaking of weight, here is my morning's bun (groan...) fight.
GU; After first bar this morning buy stop set at 52582 and this got filled by wick of 08:05 down bar, price moved down (ahh, Simon's back!) then rose up to just below entry point then dropped without threatening to make lower low, started to climb upwards very slowly printing a few "nothing" bars en route, 09:05 bar pushed price up again at 09:20 then 09:25 bar shot down taking out BE level for a big fat nothing points wise. Second trade, used prior marker for sell stop at 52286 which got filled during 10:35 bar, price had some momentum now and moved down to make 10:50 new local low, went sideways for six bars and made another new local low, stalled for four bars then pushed through prior low and trade exited on close of 11:55 bar (session time is up for me) for 74 points profit.
EU; Fiirst trade entered long at 33911 on open 08:15 bar, price went up then retreated to virtually flat and next bar started a move downwards to threaten SL at 08:35 bar's tail, then it started to reverse up again without any real momentum 09:25 bar nearly reached prior local high followed by another agonising trip down towards SL but this time making a higher low, then it rose up again with a little bit of momentum, printed new local high at 10:30 and rolled over yet again but by now teddy got thrown out of pram in frustration and I exited on close of 10:40 bar for a five point loss for over two hours of watching paint dry! Decided to leave this pair alone for rest of session and typically missed out on a quick short trade that started after 11:25 bar woke the pair up and price dropped sharply - proof that throwing teddy out of pram doesnt do that much good!
EG; Entered short on close of 09:05 bar, price stalled for three bars then shot up at 09:25 taking out SL for 15 point loss. Chart got a bit confused with previous low volatility followed by sudden opposite, so I waited 45 minutes for things to adjust themselves, entered long at 87868 on open 10:20 bar, price went down a couple of points then bounced up sharply on 10:25 bar, printed new local high at 10:55 weak up bar, went into very shallow retrace, tried to rise again at 11:20 then slipped down again so as time running out trade exited on close of 11:25 bar for 13 point profit.
Very frustrating morning session there until good old GU came to my rescue on that second trade, was it some bad news somewhere or has NVP's dream wish come true and Cheryl Cole is now front runner for prime minister?
Trade well and regards,
Simon.
Hope you all over indulged yourselves on those choc eggs during the holidays - busy time for weight watchers club now! Speaking of weight, here is my morning's bun (groan...) fight.
GU; After first bar this morning buy stop set at 52582 and this got filled by wick of 08:05 down bar, price moved down (ahh, Simon's back!) then rose up to just below entry point then dropped without threatening to make lower low, started to climb upwards very slowly printing a few "nothing" bars en route, 09:05 bar pushed price up again at 09:20 then 09:25 bar shot down taking out BE level for a big fat nothing points wise. Second trade, used prior marker for sell stop at 52286 which got filled during 10:35 bar, price had some momentum now and moved down to make 10:50 new local low, went sideways for six bars and made another new local low, stalled for four bars then pushed through prior low and trade exited on close of 11:55 bar (session time is up for me) for 74 points profit.
EU; Fiirst trade entered long at 33911 on open 08:15 bar, price went up then retreated to virtually flat and next bar started a move downwards to threaten SL at 08:35 bar's tail, then it started to reverse up again without any real momentum 09:25 bar nearly reached prior local high followed by another agonising trip down towards SL but this time making a higher low, then it rose up again with a little bit of momentum, printed new local high at 10:30 and rolled over yet again but by now teddy got thrown out of pram in frustration and I exited on close of 10:40 bar for a five point loss for over two hours of watching paint dry! Decided to leave this pair alone for rest of session and typically missed out on a quick short trade that started after 11:25 bar woke the pair up and price dropped sharply - proof that throwing teddy out of pram doesnt do that much good!
EG; Entered short on close of 09:05 bar, price stalled for three bars then shot up at 09:25 taking out SL for 15 point loss. Chart got a bit confused with previous low volatility followed by sudden opposite, so I waited 45 minutes for things to adjust themselves, entered long at 87868 on open 10:20 bar, price went down a couple of points then bounced up sharply on 10:25 bar, printed new local high at 10:55 weak up bar, went into very shallow retrace, tried to rise again at 11:20 then slipped down again so as time running out trade exited on close of 11:25 bar for 13 point profit.
Very frustrating morning session there until good old GU came to my rescue on that second trade, was it some bad news somewhere or has NVP's dream wish come true and Cheryl Cole is now front runner for prime minister?
Trade well and regards,
Simon.
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NVP
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Yep - the Stig bagged the G/U....the only real trade in town (alongside some occasional E/G) - hes the man !......
but dont knock my Cheryl ......shes just been voted worlds best dressed woman and JRP (Karen Brady to his friends) only came 4,252nd
later.....
N
